A new gas extraction project in Victoria has been approved for the first time in a decade.
Beach Energy will pipe gas from an offshore gas field near Port Campbell in western Victoria from the end of June.
The gas is intended to be used in Victorian homes and businesses with supply already factored into energy forecasts, meaning it will not impact shortfalls predicted by the Australian Energy Market Operator.
It’s the only new gas extraction plan to have sought approval from the state government since 2014.
It comes amid a government push towards all-electric homes, including a ban on gas in new builds since January 2024.
Energy and Resources Minister Lily D’Ambrosio said gas had a role to play in Victoria’s energy transition.
“It’s critical we support Victorian homes and businesses that can electrify, to do so – helping Victorians save on their energy bills and preserving gas supply for use in businesses, manufacturing and power generation,” she said in a statement.
Further details on the plan are expected to be revealed later on Thursday.
In March, the market operator warned there was a need for more gas supply in Victoria over concerns consumption would outstrip gas availability.
It found total available gas supply was set to reduce by 48 per cent from 2024 to 2028 and there would be a higher chance of outages.